OM GOEL SPINNERS PANIPAT Vs. INDIAN BANK PANIPAT

JUDGEMENT

(1.) M/s. Om Goel Spinners of Panipat have invoked the original jurisdiction of this Commission by filing the present complaint alleging deficiency in service on the part of Indian Bank, Panipat and their Asstt. General Manager as they have failed to return the documents i. e. title dead of the complainant despite the entire payment of loan etc. having already been made to them.

(2.) According to the complainant, which is a partnership firm engaged in the business of manufacture of shoddy yarn, acrylic yarn and woollen yarn, etc. they had applied for term loan with the Indian Bank in 1991. It was agreed between the parties that interest would be charged at 14% per annum. However, soon after the execution of the agreement the Bank started charging higher rate of interest than the agreed rate of 14% and continued to do so despite repeated requests made by the complainant. Not only that the complainant repaid the entire term loan by April, 1996 and the loan account stood closed. Thereafter when the complainant requested the Bank to release the property pledged against the term loan, the same was not released by the Bank even though the complainant wanted to dispose of the property to invest proceeds in some business. On the other hand on 5th February, 1997 the Bank sent a debit note to the complainant in the amount of Rs.2,41,930/- by debiting the same in the account of the complainant without their written or oral consent. Aggrieved by the aforesaid deficiency in service against the Bank and the violation of the Reserve Bank of India's directions, the complainant has filed the present complaint claiming adequate compensation against the opposite party.

(3.) In their written reply filed by the Indian Bank apart from raising the preliminary objections regarding the maintainability of the complaint on the ground that the loan was taken by the complainant for a commercial purpose and complicated questions of facts and law are involved but no justification has been shown for debiting the amount to the account of the complainant.